Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Problem with twostep GMM command "employment growth model" with interaction variables

    hallo everyone,
    i want to ask some basic question about GMM in employment growth model (the effect of exchange rate volalitility on firm employment growth like Demir(2013).
    my model is:
    Code:
    Lgrowthit 01Lgrowthit-12Volatilityt3 d.ERt+ α4 %exportt-1+ α5 %exportt-1*Volatilityt6 %exportt-1*d.ERt7%importt-18%importt-1*Volatilityt9 %importt-1*d.ERt10 ld.wagest10firmsizet11d.industryt
    if i want to check the effect of Volatilityt (exchange rate volatility) on Lgrowthit (employment growth=log difference)...what should i do? is it oke if I put Lgrowthit as dependent variable?
    or I just should put only the variable "total.labort" as a dependent using GMM?
    I'm trying to find on many discussion forum and as for as I know usually they use 'total.labor" as dependent not labor growth.
    this is confusing for me because there are difference gmm and system gmm...so what if my dependen already on difference form but some of my independent variables still on level or lag level?

    I want to ask wether my command is correct or wrong:
    Code:
    xtabond2 Lgrowthit Lgrowthit Volatilityt d.ERt %exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1  %importt-1*Volatilityt  %importt-1*d.ERt ld.wagest firmsizet d.industryt, gmm(Lgrowthit, lag(2 2)) iv(Volatilityt d.ERt %exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1  %importt-1*Volatilityt  %importt-1*d.ERt ld.wagest firmsizet d.industryt) twostep robust nodiffsargan
    Last edited by Lucius Nugroho; 16 Jun 2017, 02:18.

  • #2
    Please somebody help me, can I put Laborgrowth as dependen?
    Should I put the exact same variable on div and liv? Or i can just pick which variable on it?

    Code:
    .xtdpd Lgrowthit l.Lgrowthit Volatilityt d.ERt %exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1 %importt-1*Volatilityt %importt-1*d.ERt ld.wagest firmsizet d.industryt, dgmmiv(Lgrowthit, lag(2 2)) div(%exportt-1 %exportt-1*Volatilityt %exportt-1*d.ERt %importt-1 %importt-1*Volatilityt %importt-1*d.ERt) liv(Volatilityt d.ERt ld.wagest firmsizet d.industryt) twostep
    Last edited by Lucius Nugroho; 19 Jun 2017, 21:58.

    Comment

    Working...
    X